b'Covid-19 Impact on Airfreight IndustryPart II 2019 - Air cargo demand represented by industry-wide cargo tonnekilometres (CTKs), on the other hand, has contracted by(CTK)27.7% in April 2020 2 , due to a confluence of capacity deficit,2020427.7% 24fall in durable goods demand and global manufacturingactivity downturn. During the month of April when most part of the world underwent lockdown, the types of cargo transported by air have also shifted to daily essentials, and medical supplies and PPE.Global air trade change by industry, March 2020 Top 10 global commodity increases, March 202020203 20203Absolute change (thousand tonnes), YOY change (%) Absolute growth (thousand tonnes) COVID-19 related commodities()(%) () Chemicals High Technology Machinery Parts Safety materials made of textiles 2% 0101 6% 6% Circuits & Chips 3 1011 21 23 0110Disinfectant Raw Materials Special Handling Temperature Control Fresh meats 12% 12% 18% 44 2 49Bath & toilet soaps Capital Equipment Consumer Goods AutomotiveNonwoven fabrics14% 18%19% 18 17 17 Parts of ADP machines Fashion Goods Live Animals Garments, of nonwoven fabrics 26% 33%34 5 Medicaments Alcohols & derivates Source: Seabury: Seabury In the immediate term, there still lies much uncertainty inthe expected recovery profile for global economic activity,which is dependent on the control of the virus, governmentstimulusandinterventions.Sustainedslowdownineconomicactivitiespresentchallengesfortheaircargo202013-32%industry, which is highly vulnerable to economic changes. AccordingtoWTO,globaltradeisforecastedtoslumpbetween 13-32% in 2020.2021Notwithstandingtheabove,specialisedcargosegments201921%16%2%such as pharmaceuticals, perishables and e-commerce areexpected to grow in the longer term. According to McKinsey,e-commerce, pharmaceuticals and perishables remain to be resilient sectors and air cargo volumes for these verticals are expected to grow by 21%, 16% and 2% respectively in FY2021 compared to 2019. The growth trajectory of B2C e-commerce is likely to be accelerated due to the structural change in consumer purchasing behaviour such as higher reliance on online shopping.2Source: IATA: 4 Changi Cargo Insight'